Tuesday, June 6, 2017

Vodafone and LG UPlus partner to address South Korea market

Vodafone and LG UPlus have jointly announced a new partner market agreement covering South Korea, marking the first strategic partnership by LG Uplus with a global telecoms company.

Under the new partnership, which commenced in April 2017, Vodafone will leverage its global reach and expertise to support the consumer and enterprise operations of LG Uplus in South Korea. As part of the agreement, Vodafone will share best practices with LG Uplus across all areas of its business, including network strategy and development, with the aim of helping LG Uplus to improve its customer base management capabilities.

Vodafone and LG Uplus will additionally cooperate to enable the delivery of unified communications and enterprise services to multinational companies with a presence in South Korea and internationally.

LG Uplus is focused on providing services comprising mobile, B2B solutions and TPS (triple play service, with broadband, VoIP and IPTV), and at the end of the first quarter of 2017 served approximately 12.6 million mobile subscribers and 3.67 million broadband customers.

Vodafone Group is a global telco with mobile operations in 26 countries, partners with mobile networks in a further 49 countries and fixed broadband operations in 17 markets. At the end of March, Vodafone Group had 515.7 million mobile customers and 17.9 million fixed broadband customers, including India and all of the customers for its joint ventures and associate companies.


In April this year, Vodafone and Proximus of Belgium the renewal of their strategic partnership covering Belgium and Luxembourg for a further five years, building on a relationship that began in 2003. The agreement is designed to enable the companies to offer joint products and services across their networks for consumer and enterprise customers.


Windstream moves swiftly into agile network services

Windstream is a publicly traded telecommunications operator based in Little Rock, Arkansas that has not hesitated to move faster than its industry peers in executing transformative business strategies or in adopting cutting-edge networking technologies. The company has just launched a service called SDNow Waves for data centre cloud applications. While many rivals are rushing to address the pressing need for big-pipe data centre interconnects, Windstream's new service pushed the concept further with SDN controls over an agile optical transport layer. Mike Shippey, president of Windstream Wholesale, puts it this way:

-    "We are investing in strategic technologies that enable us to deliver flexible, on-demand services across our multi-vendor network… providing SDNow services to our customers via multi-vendor service orchestration and automated provisioning truly differentiates Windstream in the marketplace".

Windstream background

Windstream Communications was formed in 2006 when Alltell spun out its local wireline phone business and merged it with VALOR Communications Group. The deal, which was valued at $9.1 billion at the time, created a major wireline operator focused on the rural U.S. market with approximately 3.4 million access lines in 16 states and about $3.4 billion in annual revenues in 2006. Windstream then went on a buying spree. Acquisitions included CT Communications on North Carolina for $585 million, D&E Communications of Pennsylvania for $330 million, Iowa Telecom for $1.1 billion, Q-Comm of Kentucky for $782 million, Hosted Solutions of North Carolina for $310 million, and PAETEC of New York for $2.3 billion.

In November 2016, Windstream announced plans to acquire Earthlink for $1.1 billion. The merger creates an extensive national footprint spanning approximately 145,000 fibre route miles and provide advanced network connectivity, managed services, voice, internet and other value-added services. The deal brings together Windstream's scale in the enterprise segment and EarthLink's newly-launched SD-WAN service. Upon closing of the transaction, Windstream shareholders represented approximately 51% and EarthLink shareholders represented. approximately 49% of the combined company. Earthlink was founded in 1994 and was based in Atlanta, Georgia.

In April 2017, Windstream announced plans to acquire Broadview Networks for $227 million. Broadview operates a regional MPLS backbone serving small and medium-sized businesses in the Northeastern and Mid-Atlantic states.

The REIT Spin-off

In August 2015, Windstream completed a tax-free spin-off of select telecommunications network assets into a new company, Communications Sales and Leasing (CSAL), an independent publicly traded real estate investment trust (REIT). This network operations business leases back the physical assets to Windstream through a long-term triple-net exclusive lease with an initial estimated rent payment of $650 million per year. In addition, at the time of the REIT transactions Windstream also announced the near completion of a one-for-six reverse stock split of Windstream's shares. Also, Windstream repaid debt in an aggregate amount equal to $2.4 billion under its outstanding credit agreement.

Recent business highlights

For Q1 2017, Windstream reported total revenue of $1.515 billion, a decline of 7% compared to $1.632 billion a year earlier. The ILEC and Consumer business declined to $391 million from $397 million a year earlier. The Wholesale division business declined $178 million from $196 million a year earlier, the Enterprise division declined to $578 million from $594 million a year earlier, and the CLEC Consumer and SMB division declined to $198 million from $241 million a year earlier. During 2016, consumer households declined 6.3%.

To combat these trends, Windstream has been focused on expanding its network capabilities by adding metro fibre extensions (Cleveland, Dallas, Detroit, Little Rock and St. Louis) and especially be adding new capabilities via software. This includes a new SD-WAN and the new SDNow Waves launch. For consumers in its ILEC business, Windstream is working to bump up Internet access speeds by expanding the number of markets where it can deliver gigabit service.

More on the SDNow Waves service

Windstream's new SDNow Waves introduces optical wave services based on multi-vendor service orchestration and automated provisioning across the Windstream long-haul core network. It is initially available at five major third-party carrier neutral data centres in Chicago, Dallas, Ashburn, Miami and Atlanta. Windstream plans to expand the service to 50 additional locations this summer. The service is aimed at hyperscale web content and application companies in need of high capacity long-haul transport services. While the company's service launch release does not explicitly state how the multi-vendor provisioning works, below is what has previously been disclosed about the Windstream SDN strategy.

First, Windstream currently offers regional, metro and long-haul optical wavelength services at speeds ranging from 1 to 100 Gbit/s in targeted cities across the U.S. within the Windstream service area. The network reaches enterprise customers, carrier hotels, data centres and POPs with over 60,000 route combinations.

Second, Windstream has been using Infinera's DTN-X platform, featuring 500 Gbit/s super-channels, across its long-haul express network since 2014. In April 2015, Infinera announced an expanded rollout of the Windstream 100 Gbit/s long-haul express network to additional markets across the U.S.  In August 2016, Infinera cited Windstream as a test site for its new Xceed Software Suite (Xceed), which allows service providers to extend SDN automation to Infinera’s end-to-end Intelligent Transport Network portfolio, spanning long-haul, metro and data centre interconnect applications.

Thirdly, in October 2016 Ciena announced that its Blue Planet orchestration software had been selected by Windstream to automate the delivery of managed wavelength services across its multi-vendor optical network. The idea here was to utilise the optical network as a programmable resource to speed the delivery of managed 1, 10 and 100 Gigabit Ethernet wavelength services.

Another significant aspect to Windstream's SDNow Waves announcement is that it takes the carrier another step further down the road to DevOps, removing human touch-points in the service fulfilment process. Windstream says this will bring a better customer experience with improved accuracy through automated standard configurations.

The SD-WAN and Diverse Connect Services

In April, Windstream launched an all-new SD-WAN solution for the reseller community. The service, powered by VeloCloud, uses SDN to dynamically route traffic over a combination of private and public access types to reach multiple locations. The goal is to help customers maintain control over their network from a convenient centralised location rather than requiring them to manage various routers, firewalls and switches. It also simplifies management and monitoring by presenting comprehensive information to the customer in a unified management console a 'single pane of glass'.

Windstream's Wholesale portfolio also includes MEF 2.0 certified Carrier Ethernet, MPLS and Dedicated Internet Access. Also in April, Windstream announced the availability of a new business continuity service designed to ensure reliable connectivity for enterprises that rely on the cloud to support mission-critical applications. Windstream said this new Diverse Connect service helps to keep a customer's network endpoints connected while ensuring the performance of business functions including in the event of a major network issue. Diverse Connect is offered with a 99.999% (5-9s) uptime SLA that covers services from end-to-end, including over the last mile from Windstream's provider service point to the business' internal network.

XKL enables connectivity to DWDM with eVolocity platform

XKL based in Kirkland, Washington, a provider of fibre optic networking systems, announced the expansion of its eVolocity platform via the addition of features that enable connectivity to DWDM networks and lit service handoffs across the same interface, thereby allowing customers to connect physically separate private DWDM networks on a single platform.

XKL noted that the ability to light dark fibre and interface to lit services, including subsea, terrestrial and aerial systems, with a single, integrated platform can enable customers to create more flexible networks.

The XKL eVolocity platform can also serve as a media converter for aggregating 10 Gigabit Ethernet ports for transport over 100 Gbit/s DWDM wavelengths and on LAN-PHY interfaces. In addition, the platform is able to support statistical multiplexing at OSI Layer 1 to enable customers to aggregate more client-side interfaces than the standard 10 x 10 Gigabit Ethernet solutions.

The compact, 1 or 2 RU eVolocity platform additionally offers low power consumption and is designed to further reduce cost of ownership through allowing IT professionals to integrate and operate the system within their networks without the need for optical engineering expertise.


Recently, XKL launched its DarkStar Mux/Demux-Amplifier (DMD-A) optical utility appliance, offering features designed to enable increased network flexibility and manageability. The DMD-A appliance supports a range of filter options including 48- or 96-channel mux/demux and 4- or 6-band combiner filter, and enables point-to-point or east/west configurations. It also provides support for up to four EDFAs and one Raman amplifier, along with dispersion compensation and an integrated optical switch for path protection.

Earlier in the year, XKL introduced its FlexArc solution, designed to enable flexible provisioning and scaling via increased control at Layer 1 and new inline amplifier products for the DarkStar family, as well as the DQT10 transponder with ROADM, extending the DQM10 family of DWDM appliances via support for up to 96 channels and alien wave injection.


TELUS to invest C$4.2nn to upgrade network in Alberta

Canadian operator TELUS announced that it plans to invest C$4.2 billion in new communications infrastructure in Alberta over the period to 2020, including over C$900 million in 2017.

The network expansion program will include extending TELUS' gigabit-enabled PureFibre network directly to thousands more homes and businesses in rural and urban communities across the province, enhancing 4G LTE wireless service and continuing work to develop and test next-generation 5G wireless service, as well as improving support for key sectors such as healthcare and education.

TELUS noted that it recently launched a program to support vulnerable populations in Alberta with the introduction of broadband Internet service for low-income single-parent families receiving income or disability assistance from the provincial government for less than C$10 per month.

The TELUS investment in Alberta forms part of the company's national program to upgrade its network infrastructure. When announcing its financial results for the first quarter, TELUS stated it had invested C$724 billion in its networks in the first quarter and updated its consolidated financial targets for 2017, including revenue and EBITDA following closing of the agreement with Bell under which approximately 100,000 Bell MTS postpaid wireless customers and 15 dealer locations were acquired by TELUS.

In particular, TELUS raised its consolidated capex target to reflect the ongoing fibre network rollout and to support increased wireless network investments in Manitoba, as well as for its small-cell technology strategy designed to improve coverage and prepare for the introduction of 5G technology. TELUS now plans capex of approximately C$3.0 billion, up from the previous C$2.9 billion in 2017.

TELUS also announced it had reached a milestone ahead of Canada's 150th birthday, specifically that by the end of the year the company would have invested over C$150 billion in capital and operations to build and support network infrastructure across the country since 2000.

TELUS generates around C$12.9 billion in annual revenue and has 12.7 million subscriber connections, including 8.6 million wireless subscribers, 1.7 million high-speed Internet subscribers, 1.4 million residential network access lines and 1.1 million TELUS TV customers.


Telstra acquires UK-based Company85

Australian incumbent telco Telstra announced that it has acquired Company85, a UK-based technology services business headquartered in London that offers data centre, workspace, cloud, security and network services.

Established in 2010 and based in London, Company85 has approximately 75 employees and focuses on providing services to major UK-based business and government customers including the BBC, NHS, Royal Mail and London City Airport, as well as multinational corporations including AstraZeneca, J.P. Morgan and Roche.

Company85 CEO Adrian Spink stated that the combination of Telstra's network and global reach and Company85’s technical capabilities and established relationships with CIOs and chief information security officers at large organisations was expected to create significant growth opportunities.

The acquisition aligns with Telstra's strategy of expanding its technology services business internationally, and is expected to significantly enhance the company's service offering for UK and European-based businesses and government sector customers.

Company85 originally operated under the Company-I name as a specialist data centre consultancy. The company became the UK and EMEA consulting arm of Symantec Global Services before a management buyout and in 2013 acquired XOR, a specialist provider of workspace and channel services. In 2015 it acquired DVS Channel Services, providing consulting for data, voice and security services.


Sixbell selects Metaswitch for network transformation in Latin America

Metaswitch, a provider of cloud-native communications software, has announced a partnership with Sixbell, a regional telecommunications systems developer and integrator, through which the two companies will work together with service providers across Latin America to enable network transformation and deliver advanced applications and services.

Under the agreement, Metaswitch and Sixbell will focus on helping service providers in the region to implement new, advanced services including voice over LTE (VoLTE), voice over WiFi (VoWiFi), unified communications and collaboration, (UC&C) and cloud-based messaging. The partnership encompasses Metaswitch full range of applications and network software and targets fixed and mobile operators.

Sixbell is an established systems integrator with extensive experience through supporting major network operators in Latin America as they develop and launch new services and upgrade their networks. The company has local operations throughout Latin America, including in Mexico, Central America, Colombia, Brazil, Peru and Chile. The company serves customers including major telcos and large corporations and organisations throughout the region.

In the Latin America region, Metaswitch also works with partners including ATS, BVS Technology Solutions, Codecom, Cesa, Grupo Union, IP-Net, Iquall Networks, MTM Telecom and Switch.

Regarding the agreement, Pablo Pumarino, CEO at Sixbell. Said, "Network operators in Latin America are seeking new services for their consumer and business customers, and many carriers are eager to add VoLTE and unified communications to their offerings leveraging… virtualisation… the partnership with Metaswitch allows Sixbell to pursue new opportunities with its portfolio of cloud native software products and solutions".


ZTE expands partnership with Telenet of Belgium to cover 5G and IoT

ZTE announced that it has signed a strategic partnership agreement covering 5G and IoT technology with Telenet based in Belgium, a national provider of media and communications services, expanding the two companies' collaboration on next-generation technologies.

Telenet is the largest cable broadband service provider in Belgium, offering a range of digital television, fixed and mobile services to residential and business customers across Belgium and Luxembourg.

ZTE noted that in August last year, Telenet selected it to upgrade its national mobile network via the deployment of its Uni-RAN technology. The network modernisation enabled significant improvements in performance and service quality for Telenet subscribers, as well as enhanced management capabilities.

As part of the mobile network upgrade, ZTE helped Telenet replace 2G base stations and optimise 3G and 4G coverage to provide increased network capacity and improve service quality for subscribers, as well as prepare for the migration to future network technologies.

Working with ZTE, Telenet is also exploring technology for IoT services and high capacity solutions using LTE massive MIMO and LTE broadcast solutions.



  • Previously, in December 2016 ZTE and Telenet announced they had completed an outfield Pre5G test. Telenet claimed that it had become the first operator in Europe to achieve 1.3 Gbit/s download speed in live network condition. The Pre5G demonstration also constituted part of Telenet's effort towards the roll-out of 5G technology.
  • The Pre5G demonstration involved the use of four commercial spectrum bands, combined with Pre5G key technologies including massive carrier aggregation, 4 x 4 MIMO and 256QAM and achieved a data rate of 1.3 Gbit/s in real-world conditions.
  • In partnership with ZTE, Telenet stated that during 2017 it planned to deploy Pre5G solutions in urban areas across its service area, as well as for a number of large-scale events, such as Tomorrowland.

ViaWest offers access to NCP U.S.-Asia cable at Oregon data centre

ViaWest, a provider of hybrid IT solutions offering cloud, network, colocation services and security solutions and a subsidiary of Shaw Communications, announced that it to begin offering access to the New Cross Pacific (NCP) subsea cable, which is claimed to be the fastest low-latency, optical cable between the U.S. and Asia.

Directly terminating in ViaWest's Brookwood data centre in Hillsboro, Oregon, the high capacity subsea cable is designed to significantly reduce the latency between the U.S. and Asia, delivering up to 80 Tbit/s capacity between the Northwestern U.S. and East Asia to help improve access to the region that encompasses China, Taiwan, Japan and South Korea.

The 13,000 km NCP cable is intended to enable new bandwidth-intensive services between the U.S. and Asia that businesses increasingly demand. The cable system is owned by a consortium of seven companies, including a large, unnamed U.S.-based company and six Asian telecom providers, namely Chunghwa Telecom, KT of Korea, China Telecom, China Mobile and China Unicom.

With the U.S. connection point terminating at the ViaWest Brookwood data centre, the cable will utilise the latest optical amplifier technology to deliver high performance and reliability for the transmission of multiple wavelength channels on multiple fibre pairs to mainland China, South Korea, Taiwan and Japan.

The ViaWest Brookwood facility offers over 140,000 sq feet of capacity for colocation, cloud computing and other data centre services and supports private, public and hybrid cloud solutions, including a dedicated cloud node in the Brookwood facility, as well providing managed bandwidth network services. ViaWest operates 30 North American data centres and multiple cloud nodes.
* In late 2016, ViaWest announced an agreement providing connectivity to the optical cables terminating at its Hillsboro data centres with CoastCom, a fibre based service provider on the Oregon Coast and a division of Wave Broadband. The agreement provided ViaWest with shared network access pathways with other Hillsboro-area data centres.

ViaWest noted at the time that CoastCom was operating a submarine cable landing station in Pacific City, and was the owner and operator of redundant path diverse terrestrial fibre backhaul routes to Hillsboro, and had built a fibre ring connecting six data centres in the Hillsboro area to the fibre network.


* In May 2015, TE SubCom announced that it had commenced construction of the NCP cable system with consortium members China Mobile, China Telecom, China Unicom, Chunghwa Telecom, KT, Microsoft, SoftBank Mobile. In January 2017, it was reported that the FCC had granted the cable landing license for the New Pacific Cross (NCP) submarine cable system.

Monday, June 5, 2017

Fast growth continues in the big clouds

Over the past few weeks, the world’s biggest public cloud companies released their quarterly financial reports and not surprisingly, cloud services remain red hot, with several companies continuing to report triple digit growth rates. Here is a round-up of the latest numbers from Alibaba, Amazon Web Services, Google, Microsoft and Tencent.

Alibaba

For its March quarter, Alibaba reported that its Aliyun cloud business grew 103% YoY to RMB 2,163 million ($314 million). The business recorded an adjusted EBITA margin of 8%. For all of FY 2017, Aliyun had an 121% growth rate. Many expect that Aliyun's future growth will be propelled by the parent company's amazing ecommerce operations. For the 3 months ended March 2017, Alibaba reported overall revenue RMB 38,579 million ($5,605 million), an increase of 60% year on year. In addition to the Aliyun cloud revenue, Alibaba also recorded revenue from digital media and entertainment of RMB 3,927 million ($571 million), up 243% year on year. Annual active buyers on Alibaba's China retail marketplaces reached 454 million, an increase of 11 million from the 12-month period ended in December 2016.

Alibaba Group's Daniel Zhang, CEO, stated that it had another outstanding quarter and fiscal year, demonstrating its ability to engage and monetise the half a billion consumers across its platforms. He added that core commerce segment continued its significant growth and strong cash flow at large scale, enabling aggressive investment in cloud computing, digital media and entertainment to drive the digital transformation of the economy and high-quality consumption across China.

AWS

For Q1 2017, Amazon Web Services recorded net sales of $3.661 billion, up 43% from $2.566 billion a year earlier. Operating expenses rose 41% from $1.962 billion a year earlier to $2.771 billion, while operating income rose 47% from $604 million to $890 million.

During the quarter, AWS announced it will open an infrastructure region with three Availability Zones in Sweden in 2018. The company currently operates 42 Availability Zones across 16 infrastructure regions worldwide, with another five Availability Zones across two AWS Regions in France and China expected to come online this year.

Google

Ironically, Alphabet is the least transparent of the major players in disclosing the progress of its cloud initiatives. Google's mission consists in organising all of the world's information, and this data about its own operations would be very useful to investors and for the industry. The Q1 2017 quarterly report merely states that revenue from businesses other than search/advertising amounted to $3.1 billion, up 49% year on year. The other category could include anything from cloud operations, to self-driving cars or Internet balloons. This unit scored a faster growth rate than the core advertising revenue, which grew at an 18.8% annual clip to reach $21.4 billion.

Microsoft

Selected figures for Microsoft’s commercial cloud revenue (includes commercial cloud, Azure, Office 365 commercial, Dynamics 365 and some other properties):

FY15 - $5.8 billion, 44% gross margin.

FY16 - $9.5 billion, 45% gross margin.

FY17 (estimated) - $14.8 billion, ~50% gross margin.

Breaking out specifically for Azure, on the quarterly financial call Microsoft reported that Azure revenue grew 93% YoY, with Azure compute usage more than doubling compared to Q1 2016. Azure Premium services grew even faster, at a triple digit rate, although the company did not elaborate.

In the investor Q&A session, company CFO Amy Hood said she is 'extremely confident' in the Azure business and that with its growth rate it will become an increasing percentage of the company's overall revenue. A slide in her presentation showed a pie chart of revenue for Server products and Cloud Services revenue. In 2015, Azure revenue was only a thin slice, perhaps about 10% (hard numbers not posted). For 2018, the chart showed Azure revenue representing about 28% of the pie.

Microsoft is not guiding to an acceleration in capex next year and has stated that capex rate will remain the same to meet growing customer demand. So, one can assume that Microsoft will be 'sweating' its cloud infrastructure more and more over time. Though the capex budget may not be accelerating, the current levels have enabled Microsoft to rapidly build new data centres around the world while investing in some interesting (and expensive) assets, such as the shared transatlantic cable system with Facebook.

In a Microsoft investor update presentation on May 10, Satya Nadella said he is looking at Azure as a $4.5 trillion opportunity. This very big number represents far more than the cumulative total of moving all IT spending to the cloud. By ensuring that the Azure stack is built into the backend of applications across vertical industries, Microsoft is betting that it will be able to capture value from businesses ranging from autonomous vehicles to precision medicine.

Tencent

On May 17th, China's Tencent Holdings reported Q1 2017 total revenue of RMB 49,552 million ($7.182 billion), an increase of 55% over the first quarter of 2016; operating profit was RMB 19,27. Meanwhile, Tencent's social platforms are booming, with QQ IM now on 860.6 million users, Mobile QQ with 678.0 million users, and Weixin and WeChat with 937.8 million users (up 23% YoY). It is also interesting to note that during the quarter, Tencent's capex was RMB 2,108 million, down 49% YoY.

Mr. Ma Huateng, chairman and CEO of Tencent, said that it delivered a strong set of operating and financial results for the first quarter of 2017, noting that smart phone games, payment related services, digital content subscriptions, PC games and social advertising businesses all contributed to broad-based revenue growth.

Infinera's New Cloud Xpress 2 DCI Platform Enters GA

Infinera announced the general availability of the new Infinera Cloud Xpress 2 data center interconnect (DCI) platform. The Cloud Xpress 2 has already been deployed in major internet content provider (ICP) networks.

The Cloud Xpress 2, which delivers 100 Gigabit Ethernet (GbE) services between data centers, is the first platform deployed in live networks featuring the Infinera Infinite Capacity Engine (ICE4), powered by Infinera’s FlexCoherent Processor and fourth-generation photonic integrated circuit (PIC).

Infinera cited the following key capabilities for the Cloud Xpress 2:

  • Simple, open, automated. Like all models in the Cloud Xpress Family, the Cloud Xpress 2 is designed for plug-and-play installation with simplified provisioning and support for data center automation using open software-defined networking (SDN) application programming interfaces (APIs), zero-touch provisioning (ZTP) and streaming telemetry.
  • Plug-and-play capacity-reach. The Cloud Xpress 2 is based on ICE4, which incorporates Infinera’s unique PIC technology to deliver a 1.2 terabits per second (Tb/s) super-channel output. Also, offering extended reach without external amplification, the Cloud Xpress 2 delivers the highest plug-and-play capacity-reach of any compact DCI platform, simplifying system design, deployment and operations.
  • High density and low power. With 1.2 Tb/s of line-side capacity in a single rack unit, and very high power-efficiency, the Cloud Xpress 2 is designed to fit easily into space and power-constrained data center environments.
  • Instant Bandwidth. The Cloud Xpress 2 incorporates Infinera’s unique Instant Bandwidth technology, the industry’s only software defined capacity (SDC) solution, allowing customers to software-activate line-side bandwidth in 100 Gb/s increments as and when needed in minutes, aligning with their bandwidth demands.
  • Built-in encryption support. The Cloud Xpress 2 supports built-in hardware-based data encryption employing advanced industry standards and enabling 100 percent encryption of data transmitted between data centers. Built-in encryption support is an increasingly critical requirement for many DCI operators.

“Infinera has taken optical transport to the next level, by integrating ICE4 technology into Intelligent Transport Network platforms,” said Stuart Elby, Senior Vice President of Cloud Network Strategy and Technology at Infinera. “Major ICPs are deploying the Cloud Xpress 2 for its extreme simplicity, multi-terabit scalability and efficiency. The early adoption of the Cloud Xpress 2 underscores our customers’ need for a purpose-built DCI solution to enable continued rapid growth in their hyperscale networks.”

https://www.infinera.com/infinera-cloud-xpress-2-now-generally-available-deployed-internet-content-provider-networks/

See video: https://youtu.be/f2Cg1qBhp0U

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Ericsson selects Verizon managed SD WAN for IT transformation program

Ericsson announced that as part of its ongoing enterprise IT transformation initiative, the company has selected Verizon's Managed Services offering to accelerate the transformation of its corporate IT environment.

Ericsson stated that the initial implementation will focus on the deployment of Verizon's Managed Software Defined WAN (SD WAN) service, integrated with virtualised security services and Managed Enterprise RAN (E-RAN) solutions.

Verizon’s Managed SD WAN and Managed E-RAN solutions are part of the company's Network-as-a-Service offerings. The management layer supporting these services is a joint development effort that incorporates Ericsson's Dynamic Orchestration, Closed loop service assurance and Automated Validation and Onboarding Platform (AVOP).

Under the agreement, Ericsson will consume virtualised network functions (VNFs) as a utility via a pay-as-you-go, usage-based model. The solution will enable Ericsson to expand the global reach of its corporate IT infrastructure utilising Verizon's Global IP network for public and private networking solutions.




  • Ericsson unveiled its Dynamic Orchestration solution in May. The solution is designed to facilitate the introduction and closed-loop automation of services across physical and virtual networks as part of the company's strategy to enable IT transformation for its customers. Dynamic Orchestration offers a flexible, modular solution for the management of existing technologies, while also enabling the provision and control virtualisation capabilities.

Danish ISP Stofa and DOCOMO Pacific select ARRIS

ARRIS, a global supplier of communications and entertainment solutions, announced that Danish TV and Internet service provider Stofa has selected the company to transform its cable broadband network to enable gigabit broadband speeds and introduce new, enhanced services including future ultra HD TV channels, streaming and digital services.

The strategic collaboration between Stofa and ARRIS centres on a technology migration across Stofa's sites in Denmark. For the project ARRIS is delivering a new headend-to-home network solution based on DOCSIS 3.1 technology and a distributed architecture designed to increase network capacity, allow operational efficiencies and deliver faster connectivity and next-generation services to subscribers.

The ARRIS solution specifically includes its latest generation E6000 Converged Edge Router and NC2000 nodes with RemotePHY (R-PHY) modules to enable support for DOCSIS 3.1. In addition, performance management is supported by ARRIS ServAssure suite, enabling Stofa to monitor the network in real time, optimise performance and prevent or resolve outages.

Stofa, part of the SE Group, an energy and telecoms group providing electricity, energy optimisation, broadband fibre and cable TV services to more than 700,000 consumers.

Separately, DOCOMO PACIFIC, a subsidiary of Japan's NTT DOCOMO, announced it is partnering with ARRIS International for a program to offer an advanced whole home TV service that will feature live, on demand and streaming capabilities for customers in Guam and the Mariana Islands.
DOCOMO PACIFIC has selected ARRIS' MG1 video gateway to enable the new services. The MG1 solution is designed to allow subscribers to stream the same content to multiple IP devices as well as the main TV, while DVR functionality enables recording and playback at home and on the go.

The operator will also deploy ARRIS' E6000 Converged Edge Router to deliver its newly launched 100 Mbit/s high-speed broadband service and establish an upgrade path to offering gigabit speeds.


DOCOMO PACIFIC provides TV, online, mobile, phone and enterprise solutions in Guam and the Marianas. The company provides services to over 70 million mobile customers in Japan.

Extreme to acquire Avaya networking for $100m with winning bid

Extreme Networks announced that, having entered into an asset purchase agreement under which it would serve as primary bidder in a sale under the bankruptcy code to acquire Avaya's networking business for approximately $100 million, it has been approved as the winning bidder to acquire the Avaya business.

Under the bidding process, the assets of Avaya's networking business unit will be sold to Extreme for approximately $100 million, in accordance with the terms and conditions of the asset purchase agreement entered into on March 7th. The final agreement has been approved by the U.S. Bankruptcy Court for the Southern District of New York and is expected to close on or soon after July 1, 2017, subject to customary closing conditions and regulatory approvals.

As previously announced, Extreme anticipates that the transaction will be accretive to cash flow and earnings for its fiscal year 2018 starting July 1st, and expects to generate over $200 million in annualised revenue from the acquired networking assets. Extreme noted that the announcement builds on the strategy to expand its portfolio of data centre, core, campus and edge networking solutions via strategic acquisitions.

In mid-May, Avaya reported second quarter revenue for the period ended March 31, 2017 of $804 million, compared to first quarter revenue of $875 and prior year second quarter revenue of $904 million. For the second quarter it reported a net loss of $6 million, versus a net loss of $102 million in the first quarter and a net loss of $103 million in the 2106 second quarter.

For the third quarter ended march 31, 2017 Extreme reported revenue of $149 million, versus second quarter revenue of $148 million and revenue of $125 million for the prior year third quarter. The company reported net income of $11.6 million versus $12.7 million in the second quarter and net income of $3.5 million in the third quarter of 2016.

Avaya filed voluntary petitions under chapter 11 of the U.S. Bankruptcy Code in January this year, and in March entered into an asset purchase agreement under which Extreme would act as primary bidder in a section 363 sale under the bankruptcy code to acquire Avaya's networking business for approximately $100 million.

Avaya announced on January 19th that it was filing under chapter 11 of the U.S. bankruptcy code in the U.S. Bankruptcy Court, stating that its foreign affiliates were not included in the filing and would continue normal operations.

Extreme noted that in October 2016 it closed its acquisition of the wireless LAN business from Zebra Technology, which is expected to generate over $115 million in annualised revenue in fiscal year 2018. In March, Extreme announced an agreement to acquire the data centre switching, routing and analytics business of Brocade Communications Systems from Broadcom on closing of Broadcom's acquisition of Brocade. The Brocade transaction is expected to result in $230 million in annualised revenue.


Regarding the transaction, Ed Meyercord, president and CEO of Extreme Networks, said, "This strategic acquisition will be a further milestone in the execution of Extreme's growth strategy and establishes Extreme as the third largest competitor in its enterprise markets and the only company exclusively focused on delivering… end-to-end, wired and wireless enterprise IP networking".


Ixia to demo 400 GBE PAM4 OSFP and QSFP-DD

Ixia, a provider of network testing, visibility and security solutions, announced that as part of efforts to illustrate the readiness of the emerging technology it is showcasing for the first time a series of advanced 400 Gigabit Ethernet live demonstrations at Interop Tokyo in June at Makuhari Messe in Chiba, Japan.

During Interop Tokyo, leveraging its forward error correction (FEC) and physical coding sublayer (PCS) Ixia will showcase 400 Gigabit Ethernet technology via eight pulse amplitude modulation (PAM4) electrical lanes, defined as 400GAUI-8 within IEEE802.3bs, utilising third party direct attached copper cable solutions, including:

1.         What Ixia claims is the first public showcase of a 400 Gigabit Ethernet PAM4 OSFP test solution in partnership with TE Connectivity.

2.         A 400 Gigabit Ethernet PAM4 QSFP-DD demonstration in collaboration with Cisco and Foxconn Interconnect Technology (FIT).

Ixia is also demonstrating its 400 Gigabit Ethernet CFP8 interface using the MSA-compliant LR8 extended reach transceiver module from Finisar operating over single mode fibre. The Ixia CFP8 test system is compliant with the IEEE802.3bs 400GAUI-16 electrical interface.

Ixia noted that it is supporting and collaborating with multiple multisource agreement (MSA) development groups to help improve the operation and efficiency of 400 Gigabit Ethernet technology, notably:

  • Octal Small Form Factor Pluggable (OSFP), a new pluggable form factor featuring eight high speed electrical lanes that can support 400 Gbit/s rates and addresses the higher power requirements of 400 Gbit/s optics.

  • Quad Small Form Factor Pluggable Double Density (QSFP-DD), a new pluggable form factor that offers backwards compatibility with QSFP28 while quadrupling aggregate switch bandwidth and maintaining port density.


* In March of this year, Ixia announced that at OFC 2017, in collaboration with Cisco and FIT, it would demonstrate 400 Gigabit Ethernet with QSFP-DD over PAM4 electrical lanes.

CenturyLink appoints Level 3's Jeff Storey as president

CenturyLink, which in October 2016 entered into an agreement to acquire Level 3 Communications for approximately $34 billion, has announced that upon closing of the CenturyLink-Level 3 transaction Jeff Storey, currently president and CEO of Level 3, will become CenturyLink president and chief operating officer.

The company noted that, as previously announced, after the closing of the transaction Glen F. Post III will continue as CEO of CenturyLink. It is expected that Mr. Storey will succeed Glen Post as CEO of CenturyLink effective January 1, 2019, at which time Mr. Post will then become executive chairman of the company's board.

In addition to the appointment of Jeff Storey as COO, Glen Post's direct reports after the closing of the Level 3 acquisition will be as follows: Stacey Goff, EVP, general counsel and chief administrative officer; Sunit Patel, EVP and CFO; and Scott Trezise, EVP, human resources.

CenturyLink also announced that Harvey P. Perry, formerly vice chairman of the board of CenturyLink, has been appointed board chairman, effective immediately, replacing William A. Owens, who retired from the board as of May 24th. In addition, W. Bruce Hanks, a member of the CenturyLink board, has been named vice chairman, also effective immediately. Mr. Storey is one of four Level 3 board members who will join the CenturyLink board at closing of the transaction.



  • In early May CenturyLink named the senior leadership team following the acquisition of Level 3, which includes: Clay Bailey as SVP, transformation; Aamir Hussain as EVP, CTO and network operations; Dean Douglas as EVP, North America enterprise; Maxine Moreau as EVP, consumer; Girish Varma as EVP, IT and managed services; Laurinda Pang as EVP, global accounts management and international; and Gary Gauba as SVP and chief relationship officer.
  • The two companies stated that they continue to expect the transaction to close by September 30th this year.

Keysight and UC San Diego demo phased array link in 28 GHz

Keysight Technologies, a supplier of test and measurement technology, and the University of California San Diego announced a demonstration of what they claim is fastest bidirectional phased-array link in the 28 GHz 5G band.

The demonstration jointly carried out by Keysight and UC San Diego included a 64-element array that achieved a data rate of 12 Gbit/s operating at 0 degrees centigrade and over 8 Gbit/s over all scan angles at up to +/-50 degrees centigrade in azimuth and +/-25 degrees centigrade in elevation over a link distance of 300 metres. The array also delivered data rates of up to 18 Gbit/s over shorter distances.

Keysight stated that the bit-error-rate achieved during the demonstrations was less than 10-7 at maximum scan angles. Additionally, it noted that the results did not rely on calibration on the 64-element phased-array, thereby helping to reduce implementation costs.

The 64-element phased array, based on a low-cost PCB, consumed approximately 7 to 11 W of DC power in both transmit (Tx) and receive (Rx) modes leveraging UC San Diego system-on-a-chip (SoC) designs that utilise a third-generation silicon germanium (SiGe BiCMOS SBC18H3) process from TowerJazz.

For the demonstration, UC San Diego used Keysight's Signal Studio software to define and generate the 16QAM and 64QAM waveforms with both single and multiple carriers. In addition, Keysights 81199A Wideband Waveform Center software enabled the team to link Tx and Rx units, as well as improve error vector magnitude (EVM) performance. The team also used Keysight’s 89600 VSA software to perform demodulation, channel equalisation and analysis of advanced signals.

To speed the prototyping process, the Keysight M8195A arbitrary waveform generator, E8267D PSG vector signal generator and DSOS804A high-definition oscilloscope, were used, also supporting link equalisation and performance measurements across modulation bandwidths at up to 3 GHz frequencies.



  • Previously, last December Keysight and UC San Diego announced they had demonstrated what was claimed as the longest bidirectional phased-array link in the 60 GHz band. At a link distance of 300 metres, the 32-element array achieved a data rate of greater than 2 Gbit/s over all scan angles up to +/-45 degrees ,with data rates of 4 Gbit/s at 100 metres and 500 Mbit/s at 800 metres over most scan angles.
  • It was noted that the phased array consumed 3 to 4 W of DC power in transmit (Tx) or receive (Rx) modes using SoC designs developed by UC San Diego and also based on the third-generation SiGe BiCMOS SBC18H3 process from TowerJazz.

Saturday, June 3, 2017

AT&T to Acquire Vyatta from Brocade

AT&T agreed to acquire Vyatta® network operating system and associated assets of Brocade Communications Systems. Financial terms were not disclosed. The deal is contingent on the completion of Broadcom's acquisition of Brocade.

The Vyatta network operating system, including its virtual network functions (VNFs) and distributed services platform, software under development as part of its unreleased roadmap, existing software licenses, and related patents and patent applications. AT&T plans to hire certain Brocade employees associated with that business, who are located mainly in California and the UK.

AT&T said the Vyatta software bolstera its ability to deliver cloud or premises-based VNFs, starting with its previously announced SD-WAN cloud service with VeloCloud.

“Our network transformation effort lets us add new features quicker than ever before at a much lower cost,” said Andre Fuetsch, chief technology officer and president of AT&T Labs. “Being able to design and build the tools we need to enable that transformation is a win for us and for our customers.”

Vyatta could also boost AT&T’s white box platform capabilities. In late March, AT&T completed a trial with a handful of companies and industry groups to design and build its own white box switches to manage data traffic more efficiently across our network.

http://www.att.com
http://www.broadcom.com


  • Brocade acquired Vyatta in 2012.

A Complicated Chain of Mergers and Acquisitions


A convoluted set of interrelated mergers over the past two years has brought together players from Singapore, Irvine, San Jose, Suwanee (Georgia) and the UK, with the various companies in play including ARRIS, Avago, Avaya, Broadcom, Brocade, Extreme, Motorola Mobility, Pace and Ruckus. For customers, employees and investors in these companies, such transactions are always disruptive to some degree, while for the wider networking industry it is...

Extreme to Acquire Brocade's Switching Business for $55 Million


Extreme Networks agreed to acquire Brocade Communications Systems' data center switching, routing, and analytics business from Broadcom following Broadcom's acquisition of Brocade. The deal is valued at $55 million in cash, consisting of $35 million at closing and $20 million in deferred payments, as well as additional potential performance based payments to Broadcom, to be paid over a five-year term. The sale is contingent on Broadcom closing its...

Friday, June 2, 2017

Big plans for next gen satellite constellations – Part 1

One thing about the space industry that is a certainty, people like to think big. Just as the mobile networking industry is wrapping up the big 4G LTE network rollouts across the six inhabited continents, while setting its sights on much denser 5G infrastructure, the satellite industry is setting the stage for new generation of broadband satellite constellations. While some see a growing saturation of mobile coverage, augmented by FTTH, xDSL and cable modem fixed line services, the satellite proponents point out that there are billions of people in the developing countries without dependable Internet access.

An FCC study recently found that more than 39% of Americans living in rural areas lack access to advanced telecommunications capability, as compared to 4% of Americans living in urban areas, and approximately 41% of Americans living on Tribal lands lacking access to advanced telecommunications capability. For such unserved or underserved markets broadband satellites promise ubiquitous coverage in rural and hard-to-reach places, especially islands without an undersea cable connection. Satellites also offer an 'incremental user advantage' over mobile infrastructure. This means that if there is one user residing outside the network footprint, the mobile or fixed line network would require the deployment of new equipment closer to this user. For satellite, there is no additional cost from adding just one user from its very wide footprint. This series will look at two recently floated broadband satellite proposals: SpaceX and Ligado Networks.

Elon Musk's SpaceX – massive ambition

Space Exploration Technologies (SpaceX) is widely known for its Falcon reusable rocket designs and long-term mission to colonise Mars. The Hawthorne, California based company was founded in 2002 by Elon Musk. Its first big milestones include launching and recovering its Dragon spacecraft in 2010 and becoming the first private company to successfully send a spacecraft to the International Space Station in 2012. It currently has about 6,000 employees; investors include Google, Fidelity, Draper Fisher Jurvetson, Founders Fund, Valor Equity Partners and Capricorn. SpaceX believes its reusable launch system is the magic that will significantly bring down the cost of getting into space. Beginning in 2017, SpaceX has entered a schedule of launches on behalf of commercial customers and its NASA contract to transport goods and soon astronauts to the International Space Station.

The SpaceX LEO plans

Earlier this month, Patricia Cooper, VP, Satellite Government Affairs for SpaceX, unveiled an ambitious plan for low-earth orbit satellites during testimony in front of the U.S. Senate's Committee on Commerce, Science & Technology. Her testimony centred on a new generation of U.S.-based LEO satellites. The advantage of LEO positioning is that the satellite can deliver much lower latency versus satellites parked in a geostationary orbit at distances of 22,000 miles. However, large constellations of LEO satellites are needed to maintain continuous coverage.

SpaceX follows a vertically-integrated approach from design, development, production, launch and operations. The company says it is already the world's largest launch services provider, measured by missions under contract. Its upcoming launch manifest current has 70 mission bookings. As of May 16th, the SpaceX Falcon 9 launch vehicle has successfully launched 33 times. SpaceX plans to leverage technology advances like dynamic beam forming and phased array antennas in space and on the ground, as well as optical inter-satellite links to establish a 'mesh network' in space through which the satellites will communicate with each other.

First SpaceX design points:

•   Initially, the SpaceX system will consist of 4,425 satellites operating in 83 orbital planes (at altitudes ranging from 1,110 km to 1,325 km).

•   The system will require associated ground control facilities, gateway earth stations, and end user earth stations.

•   The system will use Ka- and Ku-Band spectrum.

•   Target customers include residential, commercial, institutional, governmental, and professional users worldwide.

SpaceX has separately filed for authority to operate in the V-Band, where the company has proposed an additional constellation of 7,500 satellites operating even closer to Earth. To implement the system, SpaceX will utilise the availability of significantly more powerful computing and software capabilities, which will enable SpaceX to allocate broadband resources in real time, placing capacity where it is most needed and directing energy away from areas where it might cause interference to other systems, either in space or on the ground.

In terms of CPE, SpaceX is developing a relatively small flat panel roughly the size of a laptop. It will use similar phased array technologies to allow for highly directive, steered antenna beams that track the system's LEO satellites. In space, the satellites will communicate with each other using optical inter-satellite links, in effect creating a mesh network overhead that will enable seamless network management and continuity of service.

Space X is seeking regulatory clearance to expand the umbrella coverage of the LEO constellation with the more intensive coverage from the VLEO constellation. The company anticipates launching its first prototype satellites by the end on the year. Operation launch is anticipated in 2019 and the company hopes that the remaining satellites will be launched in phases through 2024, when the system will reach full capacity with the Ka- and Ku-band satellites. Naturally, SpaceX intends to use its own Falcon 9 rocket, leveraging significant launch cost savings afforded by the first stage reusability now demonstrated with the vehicle.

At this stage in the project, it looks as though SpaceX is planning to design, launch and operate the broadband satellite constellation on a global basis, with the first prototype launch expected in 2018. So far, it has apparently filed for regulatory permits only in the U.S. Proceeds from the network operations presumably will be used to fund the company's Mars ambitions.

Australia's nbn passes 5m premises, 2.2m customers connected

nbn, responsible for building a national broadband network in Australia, which in April reported it had reached 4.5 million homes passed and 2 million connected customers, has now announced a further significant roll-out milestone with 5 million homes and businesses now able to connect to retail services over the nbn network.

nbn, which is constructing a new and upgraded wholesale broadband network to provide communities across Australia with access to fast broadband from retail service providers, aims to deliver universal high speed access across Australia and a goal of connecting 8 million homes and businesses by 2020.

nbn noted that under its multi-technology mix (MTM) model, FTTN and HFC deployments are driving the increased rollout rate, with the two technologies together now serving around half of the 5 million premises that are able to connect to retail services over the nbn network. It noted that the rate of nbn network deployment is currently averaging 250,000 premises made serviceable each month in the year to date.

The company forecasts that the roll-out pace will increase further over the three months from April to June, during which period it expects to make a further one million premises serviceable as it approaches the target for financial year 2017 of 5.4 million premises ready for service (RFS). Retail services on the nbn network are currently available to nearly one in two Australians. The network is scheduled to be three quarters completed by mid-2018 and complete by 2020.

nbn stated that customer activations are also increasing, with 2.2 million premises now using retail services over the nbn network, with approximately 130,000 new premises signing up with retail service providers each month.


Reported by state, nbn noted that RFS premises are as follows: New South Wales – 1,572,676; Queensland – 1,041,981; Victoria – 1,105,618; Tasmania – 235,452; South Australia – 410,191; Western Australia – 513,300; Northern Territory – 88,645; and Australian Capital Territory – 67,209.

Poland's PSNC deploys ADVA FSP 3000 CloudConnect for 400G connectivity

ADVA Optical Networking announced that the Poland's Poznań Supercomputing and Networking Center (PSNC) has deployed its FSP 3000 CloudConnect platform with QuadFlex 400 Gbit/s technology into the PIONIER network, a regional R&E network that links high-performance computing centres in five cities across Poland, as well as providing onward connectivity to the European Organisation for Nuclear Research (CERN) in Switzerland.

The open ADVA data centre interconnect (DCI) solution deployed by PSNC is transmitting large data loads utilising the 16QAM modulation format. The 96-channel network, which connects supercomputing centres in Poznań and Warsaw, is designed to remove data capacity restrictions and enable researchers to share large data sets. The new solution will help Poland's R&E community to collaborate, share their findings and more reliably access data-intensive applications.

Based on the ADVA FSP 3000 CloudConnect platform, the new infrastructure incorporates the vendor's QuadFlex technology to enable transport at 400 Gbit/s over 385 km reach without the need for signal regeneration. The system is configured with two 200 Gbit/s wavelengths operating at 16QAM within an optical super-channel. ADVA noted that the new high-capacity link forms a key section of the PIONIER network operated domestically by PSNC.

Designed to provide scalability and bandwidth optimisation, the FSP 3000 CloudConnect platform offers energy efficiency in a compact footprint, and is claimed to require less rack space than competing solutions.



  • Earlier this year, ADVA announced that PSNC had deployed the FSP 3000 equipped with 100 Gbit/s core technology into its PIONIER network. The 96-channel 100 Gbit/s coherent long-haul solution provided by ADVA offers reach of over 3,466 km without signal regeneration and provides redundant GMPLS-based networking between supercomputing centres in the cities of PoznaÅ„, Gdansk, Warsaw, Krakow and Wroclaw.